I know that several people on this board own multiple rental properties, and I hope to lean on their experience. We are a few months away from paying off the mortgage on our 2-flat, and I hope to buy a small investment rental condo, but am unsure about the best way to finance it: home equity loan, HELOC, traditional mortgage, 5/1 ARM. Any thoughts?
More specifically, we are looking at pretty inexpensive units ($100-160K) that we can pay off in a couple of years. Unfortunately, several of the particular units are ineligible for mortgages and need to be cash sales -- besides HELOC or home equity loans, is there another way to finance this type of sale?
Thanks in advance for any suggestions, advice or specifics to consider.